Dropbox is dropping the layoffs hammer.
Dropbox co-CEO Ashraf Alkarmi announced on Wednesday that the cloud-based storage company is laying off roughly 9% of its global workforce.
“Today, we’re making difficult choices about where we invest and how we organize Dropbox to achieve the product and growth priorities that will matter most for our long-term strategy,” Alkarmi wrote in an email to workers that the company posted publicly.
Alkarmi said Dropbox is eliminating roughly 200 roles across its across Engineering, Product, Design, and G&A team. The company, Alkarmi wrote, is profitable but needs to make “hard choices” about where it spends its money.
“Delivering on that strategy requires concentrating our resources on the priorities that will have the greatest potential for customer impact and growth,” he wrote.
As part of the changes, Alkarmi also announced that chief technology officer Ali Dasdan will be spending down.
Read the full email
Hi everyone,
Today, we’re making difficult choices about where we invest and how we organize Dropbox to achieve the product and growth priorities that will matter most for our long-term strategy. As part of these changes, we’ve made the decision to eliminate about 200 roles across Engineering, Product, Design, and G&A teams (approximately 9% of our global workforce). For most impacted Dropboxers, today will be their last day.
S-team and I take full ownership of this decision and recognize that these colleagues have made meaningful contributions to Dropbox, our products, our customers, and our teams. Our first priority today is to treat every person affected with the care and respect they deserve.
Changes to Senior Leadership
I also want to share that Ali Dasdan has decided to move on from Dropbox. During his time here, Ali led and strengthened many of the technical capabilities we’ll rely on as we move into the next phase of our transformation. I’m grateful for his leadership, his partnership, and the foundation he and the team have put in place. Ali’s last day is November 18th, and he’ll be focused on ensuring a smooth transition through next month. We wish him all the best in what comes next.
Why we’re making these changes
Our business is profitable, and we’ve built real momentum this year. Our two-year strategy sets a clear direction for growth: solving more of our customers’ critical workflows; reaching more of our chosen customers, including larger companies; and bringing our technology to new markets.
Delivering on that strategy requires concentrating our resources on the priorities that will have the greatest potential for customer impact and growth.
That means making hard choices about where we invest, how we’re organized, and what work we simplify, scale back, or stop. Those choices include the difficult decision to reduce the size of our team.
How we’ll prioritize going forward
In order to be successful, we can’t take the same work and spread it across fewer people. We’ll streamline teams and concentrate support and resources against product areas that have the highest impact on our customers and Dropbox as a business.
Taking care of impacted employees
To those leaving Dropbox, we’re committed to supporting you through this transition. Departing Dropboxers are eligible for a severance package in line with the following:
Severance, equity, and transition support:
Sixteen weeks of pay beginning today, plus one additional week for each completed year at Dropbox. International packages will reflect local practices and legal requirements
Q4 equity vesting
For employees on the Corporate Bonus plan, a prorated lump-sum payment based on their 2026 bonus target
Immigration support for impacted visa holders
Healthcare and well-being:
U.S. employees will receive six months of COBRA subsidy, if elected and eligible
Modern Health access will continue through the end of the separation month to support mental well-being, with extension options detailed in severance packages
Payment for eligible current and approved upcoming paid leaves, including medical and family leave
Additional support:
Devices: Impacted employees will be eligible to keep (1) Dropbox laptop, (1) mobile device if assigned, and all existing desktop peripherals
Job placement: Job placement services and career coaching will be available at no cost
What comes next
Right now, our focus is on the colleagues who are leaving Dropbox. Please give them the space and support they need.
And to everyone leaving Dropbox: thank you. Your work to build our capabilities, serve our customers, and contribute to our culture has been deeply meaningful. I’m grateful for everything you’ve contributed.
Ashraf
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